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Gold/Mining/Energy : Yamana Resources INC. T- YRI -- Ignore unavailable to you. Want to Upgrade?

To: Tupulak who wrote (1974)	1/25/1999 10:49:00 PM
From: G	Read Replies (1) \| Respond to of 2346

they believe north bacon holds 50mm+ ounces of silver.. we still have south bacon and lejano... this news IMO blow the mkt away tommorrow... there were other incredible drill results reported as well as encouragement on other properties... they promised news and news they gave us.... next week we should have news on lejano... lets hope cannacord who has a 6 month target of $2.5 and 12m of $3 gets thier clients on board at much higher levels tommorrow. i think we will test $1.25 level tues....

To: Tupulak who wrote (1974)	1/25/1999 11:27:00 PM
From: Neil Irwin	Read Replies (2) \| Respond to of 2346

Curtis, Here are some of their findings: * calculated to only 75-meter depth * only within the Veta Martha Silver Shoot * assays are uncut (cutting will reduce the estimate) * Mel Klohn said "I am optimistic that this new drilling could more than triple the inferred silver resource." * and "Yamana's management firmly believes that North Bacon ultimately holds promise for discovery of a 50-million-ounce silver deposit." * proceeding with metallurgical testing of the Veta Martha Silver Shoot * Yamana predicts that the silver contained in the North Bacon deposit will be readily recoverable using standard mill and flotation methods. * an internal preliminary cash flow analysis shows that a 200-tonne-per-day underground mining operation, capitalized at US$7.5 million and producing about 2 million ounces of equivalent silver per year, would have an internal rate of return of 53 percent, with the capital investment being recovered after 16 months. Some interesting statements and projections. Taking the last point to case, the estimated mine life would be only 3.5 years but would generate a profit of almost $20M. Taking the net present value of that and spreading it over roughly 35M shares doesn't leave too much per share. However, this is a good start. This would certainly improve if they can find a 50M ounce deposit. IMHO, Lejano has better potential, so it'll be interesting to see the press release on that (I do congratulate YRI for writing completeness!) Also, don't forget that Bacon is close to the Manantial Espejo, a project between Silver Standard and Barrick (ie. may make YRI a target). Neil.